Why Binh Duong Is Vietnam’s Top FDI Magnet

Foreign investors are increasingly targeting Binh Duong province, a region that has rapidly transformed from a rural area into a central hub for manufacturing and processing. Located in the Southern Key Economic Region, the province now hosts 30 industrial zones and is second only to Ho Chi Minh City in attracting foreign direct investment. The local government anticipates an economic growth rate of 8 to 8.5 percent this year, driven by a renewed focus on high-tech industries and the development of new industrial parks.

Recent Investment Growth

Capital inflows into the province have surged recently. In 2021, Binh Duong attracted nearly $9.01 billion in registered investment through 985 projects that adjusted their capital, marking a 40.5 percent increase over the previous year. This momentum continued into the first quarter of 2022, with foreign investment reaching $1.6 billion—three and a half times higher than the same period last year. The province now houses more than 3,400 companies from 64 countries and territories.

Key players driving this activity include Denmark and Singapore. Denmark was the largest investor in the first quarter of 2022, contributing $1.3 billion, largely due to the LEGO Group’s massive expansion. The company received an investment certificate in March for a project at the VSIP III Industrial Park, a facility that will be LEGO’s sixth-largest factory globally and second in Asia. Singapore is also a dominant investor, accounting for one-fifth of the total FDI with 260 enterprises. South Korea follows with over 800 projects and approximately $3.4 billion in total capital.

Infrastructure and Policy

A significant factor in Binh Duong’s success is its infrastructure. The province ranks sixth in the country on the Provincial Competitiveness Index (PCI), a distinction earned through efforts to cut administrative procedures and improve the business environment. It also tops the Infrastructure Index, which evaluates roads, utilities, and industrial zones. The local authority is currently prioritizing the completion of major transport projects, including the Ho Chi Minh City-Thu Dau Mot-Chon Thanh expressway and the Song Than intersection, to improve connectivity with the Mekong Delta and the Southeast region.

Reporters note that the business climate has improved noticeably, particularly for foreign entities seeking stability. Administrative hurdles remain a challenge in many areas, yet Binh Duong has successfully streamlined many processes. The province’s strategic location allows for efficient logistics, linking it closely with other economic zones. This connectivity supports the rapid expansion of manufacturing facilities. The region’s growing industrial base relies heavily on a skilled labor pool. The workforce is adapting to the demands of high-tech production, ensuring that local talent can meet the requirements of multinational corporations.